Trump's Push for US Corn Sales to India Faces Major Obstacles

US Commerce Secretary Howard Lutnick has criticized India’s protective agricultural policies while pushing for greater access to US corn in a contentious trade relationship.

As tensions rise in the ongoing trade war, US officials, including Commerce Secretary Howard Lutnick, are urging India to purchase American corn, a move that highlights the complexities of agricultural trade between the two nations. Lutnick has publicly challenged India's restrictive market practices, asserting that such barriers prevent American farmers from expanding their market reach.

Despite ongoing pressures, India is unlikely to alter its steadfast agricultural policies that prioritize food security and the livelihoods of millions of small farmers. Historically, India has protected its agriculture sector, a fundamental shift from relying on food imports in the mid-20th century to becoming a self-sufficient food producer and a significant exporter today. However, challenges such as low productivity, inadequate infrastructure, and the threat of climate change continue to plague the sector.

With average farm sizes drastically smaller than those in the US, Indian farmers grapple with significant limitations, working under an average of less than one hectare per individual compared to their American counterparts who farm over 46 hectares. This disparity results in India maintaining high tariffs on food imports, often ranging between zero to 150%.

Bilateral trade between India and the US in agricultural products hovers around $8 billion, with major exports from India consisting of rice, shrimp, and honey, while the US exports nuts and fruits. As negotiations progress, Washington's focus appears to be on pushing for significant agricultural exports like wheat and maize to address its trade deficit with India, which stands at $45 billion.

Experts have pointed out that the fundamental differences between US commercial agriculture and India’s subsistence farming methods complicate negotiations. US agricultural practices, heavily supported through subsidies, create an uneven playing field for Indian farmers. This imbalance raises concerns that lowering India's trade barriers could jeopardize the livelihoods of millions who depend on agriculture.

Moreover, India's domestic issues worsen its agricultural landscape, with insufficient investment in the sector and ongoing protests from farmers demanding better pricing and support. Experts caution that succumbing to US demands may disrupt local economies, threaten food security, and inundate markets with cheap imports.

Looking forward, analysts suggest that India should prioritize its agricultural sovereignty while engaging in negotiations that protect the interests of its farmers. They also stress the necessity for India to modernize its agricultural practices and boost productivity to enhance its competitiveness.

In summary, while the US administration pushes for greater access to Indian markets, India's agricultural policies are unlikely to budge easily. As tensions persist, India faces the dual challenge of negotiating trade agreements while safeguarding the livelihoods of a significant portion of its population reliant on agriculture.